This opens the doors to
eventual congressional approval of a new North American trade pact which is
good news for America’s hard-working dairy farmers who have suffered over the
last year from the loss of their two largest trading partners.
The
only fly in the ointment is that Friday’s ‘deal’ allows the U.S. to re-impose
the tariffs if either aluminum or steel imports 'surge meaningfully' over a period of time.
What constitutes a meaningful surge is to be defined by US steel and
aluminum interests – which means that at the first sign of price and/or supply
competition they’ll run crying to the White House. Translation:
Politically-managed trade.
Nevertheless,
all of this is progress in the right direction even though we are months and
months away from congressional ratification of the USMCA. Personally, I've been heartened over the past seven days as more and more people have spoken truth to power about tariffs. The Truth is that Importers pay these trade taxes and the costs are virtually always paid by you and I - the consumer.
One final thought – I think that Tariff Man
got a little jangled by last week's market volatility. Raising the specter of his doppelgänger
- Dow Man. And, of-course, the 2020
election.
photo - ABC News
Have a terrific weekend!
No comments:
Post a Comment